Section 1: Introduction

[THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Section 1: Introduction Three Rivers Electric Cooperative (Three Rivers) was established in 1939 to provide electric service to the rural areas of central Missouri, south of the Missouri River. Three Rivers is headquartered in Linn, Missouri, and provides service to customers in Cole, Franklin, Gasconade, Maries, Miller, Moniteau and Osage counties. The cooperative is run by a board of nine directors which approve the company s mission and internally developed business policy: Three Rivers Electric Cooperative mission is to provide the best possible service at rates consistent with sound business practices. We will invest in technology to improve reliability, operations and efficiency. Three Rivers service boundaries are shown in Figure 1 (source: Three Rivers Electric Cooperative). This map illustrates that the service area includes all of Osage County, the northern half of Gasconade County, a portion of western Franklin County, northern Maries County, southeastern Cole County, northeastern Miller County, and the southeastern corner of Moniteau County. The cooperative owns 3,983 miles of service line within these counties. Figure 1 43-1

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] As of December 2010, the customer base of Three Rivers currently serves 21,555 accounts in the seven counties of service. Residential customers account for 92% of memberships (19,899 members) while non-residential customers make up the remaining 8% (656 members). Table 1.1 provides the summary of metered customers by Missouri county. Table 1.1 Meters by Missouri County County Number of meters Cole 8,102 Franklin 593 Gasconade 3,474 Maries 1,838 Miller 2,384 Moniteau 121 Osage 5,043 The average daily customer usage for Three Rivers is 41 kilowatt-hours (kwh). Annual total usage of Three Rivers customers in 2010 was 393,020,011 kwh of service. Population density for the cooperative service area is depicted in Figure 2 (Map source: U.S. Census 2010). Figure 2 43-2

[THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Section 2: Planning process Through a partnership between the Association of Missouri Electric Cooperatives and the Missouri Association of Councils of Government, the Meramec Regional Planning Commission was contracted to facilitate a hazard mitigation planning process for Three Rivers. The initial meeting between the two entities was held on February 4, 2011 as part of a regional kick-off meeting for central Missouri. This informational meeting provided the basic responsibilities for each agency and allowed for initial discussion concerning the project timelines, data collection and other pertinent topics. One additional planning meeting was held at the Three Rivers offices in Linn, Missouri during the month of September. Table 1.2 summarizes the attendees and topics of each meeting. Meeting notes are available in the chapter appendix. Table 1.2 Three Rivers Planning Meeting Synopsis Meeting Date Attendees, Title, Organization Topics of discussion September 22, 2011 Roger Kloeppel, Manager of Operations, Three Rivers Electric Cooperative Tom Werdenhause, General Manager, Three Rivers Electric Cooperative Scott Struemph, Accounting Suprevisor, Three Rivers Electric Cooperative Tamara Snodgrass, Regional Planner, MRPC Three Rivers Customer information Critical facilities information Asset inventory by type and location Data collection assignments Goals and Objectives Discussion Public Involvement As with all public hazard mitigation plans, public involvement was encouraged through a variety of methods. Three Rivers posted their local chapter on the company s website, inviting both cooperative members and the general public to provide comment. Print copies of the chapter were also made available upon request through the local office. Comments from neighboring jurisdictions were also solicited using the standardized AMEC letter which was mailed to the appropriate contacts, including: Cole County Commission, Franklin County Commission, Gasconade County Commission, Maries County Commission, Miller County Commission, Moniteau County Commission, Osage County Commission, Local emergency management directors, and Local Red Cross chapter. Three Rivers provides service to a variety of facilities that could be considered critical infrastructure. These include: Linn Technical College, a federal aviation facility, Osage County Emergency Management facility, Linn Fire Protection District, Westphalia Fire 43-3

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] Protection District, Morrison Volunteer Fire Department, Osage County 911 offices, Argyle Volunteer Fire Department and St. Mary s Belle Family Health Center all in Osage County; Missouri State Highway Patrol Troop F facility, Cole County Fire Protection Districts, and Osage Fire Protection District all in Cole County; New Haven- Berger Fire and Ambulance District in Franklin County; Hermann Area District Hospital, Stony Hill Community Fire Department, Hermann Fire Company #1, Missouri State highway Patrol facility and Gasconade County Sheriff s Department all in Gasconade County; Dixon Rural Volunteer Fire Department Missouri State Highway Patrol facility and Meta Fire and Rescue Fire Protection District in Maries County; and Moreau Fire Protection District in Moniteau County. Additionally, Three Rivers mitigation plan was included in the public comment period for the combined AMEC plan. 43-4

[THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Section 3: Asset inventory Three Rivers Electric Cooperative has a wide variety of assets by type. Real estate owned by the company includes office buildings and warehouses located in Linn. In addition, Three Rivers owns garages located in Brazito. Thirty-eight vehicles provide access to customers and infrastructure. Three Rivers does not own any electric generation or transmission infrastructure. 3,983 miles of distribution lines are owned and maintained by Three Rivers. Table 1.3 provides information concerning total asset valuation. Table 1.3 Asset Total Three Rivers Assets Distribution Lines Supporting Infrastructure Three Rivers Asset Inventory Valuation Summary Total Replacement Cost breakdown Cost $259,596,555 Buildings and vehicles - $12,714,885 Overhead assets - $223,663,170 Underground assets - $23,218,500 $81,847,920 OH OH Single-phase lines - $69,045,020 $18,232,500 UG UG Single-phase lines - $16,917,000 OH Three-phase lines - $12,802,900 $141,815,250 OH $4,986,000 UG Office Buildings $4,615,000 Warehouses $4,441,000 Vehicles $3,658,885 Source: Internal Three Rivers Accounting and Insurance records, 2011 UG Three-phase lines - $1,315,500 Meters - $4,311,000 Poles - $90,765,600 OH Transformers - $24,721,500 UG Transformers - $4,986,000 Guys - $8,906,100 Anchors - $8,277,850 Cross-arms - $2,902,200 Regulators - $539,000 Reclosures - $1,257,000 Capacitors - $135,000 Ensuring quality distribution to its customers, Three Rivers maintains not only distribution lines, but also the supporting infrastructure as well. Table 1.4 includes a list of asset types, emergency replacement cost per unit or mile, the asset inventory by service county, and total infrastructure numbers. 43-5

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] Table 1.4 Asset Three Rivers Asset Inventory by service county Emergency Number Number Number of Replacement of units or of units or units or Cost per unit miles: miles: miles: or mile Cole Osage Gasconade Number of units or miles: Miller Number of units or miles: Maries Number of units or miles: Franklin Number of units or miles: Moniteau Total number of units or miles: Meter $200/unit 8,102 5,043 3,474 2,384 1,838 593 121 21,555 Pole $1,200/unit 16,186 22,306 14,630 9,837 9,014 3,168 497 75,638 SP*** distribution line 587.92 OH** 941.11 OH 616.22 OH 24.87 UG 417.93 OH 414.35 OH 138.75 OH 22.13 OH.37 UG 3,138.41 OH 338.34 UG TP**** distribution line Transformers $22,000/mile OH $50,000/mile UG $22,000/mile OH $50,000/mile UG $1,500 OH $3,000 UG 159.66 UG*** 142.6 OH 13.51 UG 4,568 OH 48.61 UG 191.16 OH 7.88 UG 4,453 OH 104.27 OH 3.07 UG 2,894 OH 90.28 UG 70.47 OH 1.59 UG 2,130 OH 8.68 UG 51.76 OH.15 UG 1,742 OH 5.87 UG 19.79 OH.11 UG 582 OH 1.9 OH 0 UG 112 OH 581.95 OH 26.31 UG 16,481 OH 1,168 UG 210 UG 147 UG 22 UG 23 UG 0 UG 1,662 UG 92 UG Guys $175/unit 12,443 14,263 9,747 6,572 5,454 2,067 346 50,892 Anchors $175/unit 11,469 13,540 8,620 6,209 5,236 1,893 335 47,302 Cross-arms $200/unit 3,556 4,767 2,600 1,757 1,291 493 47 14,511 Regulators $7,000/unit 20 29 15 9 3 1 0 77 Reclosures $3,000/unit 140 154 0 64 56 0 5 419 Capacitors $1,000/unit 44 36 22 16 9 6 2 135 Total $49,466,840 $65,885,165 $42,303,805 $29,080,075 $26,378,770 $9,085,680 $1,462,835OH $223,663,170 OH Replacement OH OH OH OH OH OH Value by $23,218,500 UG county $18,500 UG $12,162,500 UG $3,454,500 UG $1,838,000 UG $4,869,50 0 UG $507,500 UG $368,000 UG **OH = overhead ***UG = underground ***SP = Single phase ****TP Three phase Source: Internal Three Rivers Accounting and Maintenance records 43-6

[THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Section 4: Identified Hazards and Risk Assessment Methodology Natural hazards in central Missouri vary dramatically with regard to intensity, frequency, and the scope of impact. Some hazards, like earthquakes, happen without warning and do not provide any opportunity to prepare for the threat. Other hazards, such as tornadoes, flooding, or severe winter storms, provide a period of warning which allows for public preparation prior to their occurrence. Regardless, hazard mitigation planning can lessen the negative of any natural disaster regardless of onset time. The following natural hazards have been identified as potential threats for the service region of the Three Rivers Electric Cooperative: Tornadoes Severe Thunderstorms, Hail, and High Winds Flood and Levee Failure Severe Winter Weather Earthquakes Dam Failure Severe Land Subsidence Wildfire Likewise, a number of hazards may be eliminated from consideration in their local plan due to the state s geographic location including tsunamis, hurricanes, coastal storms, volcanic activity, avalanche, and tropical storms. Additionally, a number of hazards may be eliminated specifically for Three Rivers because of asset types and geographic location in the state of Missouri. Those hazards eliminated for the Three Rivers service region include: Drought Heat Wave Landslides Although drought can potentially impact northwest Missouri, water availability does not directly impact the delivery of electric service to Three Rivers customers. Similarly, heat wave has been eliminated. Though it may result in additional usage and potentially tax the system, heat waves do not usually cause infrastructure damage to cooperative assets. The results of a heat wave in the Three Rivers service area may be considered cascading events rather than damage caused directly by the hazard itself. Landslides have also been eliminated based upon local soil structure categorization by the USGS. For the purpose of this risk assessment, the identified hazards for the Three Rivers service area have been divided into two categories: historical and non-historical hazards. Historical Hazards are those hazards with a measurable previous impact upon the service area. Damage costs per event and a chronology of occurrences are available. The associated vulnerability assessments utilize the number of events 43-7

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] and cost of each event to establish an average cost per incident. For Three Rivers, hazards with historical data include tornadoes, severe thunderstorms/high wind/hail, flood, severe winter weather, and wildfire. Non-historical Hazards are hazards with no previous record of impact upon the local service area for example levee failure. As such, the associated vulnerability assessments for each of these hazards will have an occurrence probability of less than 1% in any, but the extent of damage will vary considerably. For Three Rivers, hazards without historical data include earthquakes, land subsidence and dam failure. Probability of Occurrence In determining the potential frequency of occurrences, a simple formula was used. For historical events, the number of recorded events for the service area was divided by the number of years of record. This number was then multiplied by 100 to provide a percentage. This formula was used to determine future probability for each hazard. For events that have not occurred, a probability of less than 1% was automatically assigned as the hazard cannot be excluded from the possibility of occurrence. Likewise, when discussing the probable risk of each hazard based upon historical occurrences, the following scale was utilized: Less than 1% chance of an event occurrence in any. 1-10% chance of an event occurrence in any 10-99% chance of an event occurrence in any Near 100% chance of an event occurrence in any The number of occurrences was further refined to focus on damage-causing events. Those occasions which had reported damages were divided by the total number of recorded events to obtain a percentage of total storms which result in infrastructure damage. (Formula: Number of damage-causing events / total number of events = Percentage of occurrences which cause damage.) Potential Extent of Damage Vulnerability Assessment matrices for each hazard are included on the following pages. These worksheets detail loss estimates for each hazard affecting the cooperative s service area. Loss estimates were calculated using the asset summary created by internal Three Rivers accounting records. Each hazard has a unique impact upon the service area, requiring each hazard to utilize a different valuation amount depending upon the level of impact. Non-historical hazards assume damage to all general assets. For Historical Hazards, assets were divided into two groups based upon historical impact which were utilized in the hazard damage analysis: Overhead infrastructure assets and buildings o Used for Tornado damage assessments 43-8

Potential Extent of Damage [THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 o Valued at $232,719,170 Overhead infrastructure assets only o Used for: Severe Thunderstorm / High Wind / Hail Flood Severe Winter Weather o Valued at $223,663,170 In addition, historical hazards with recorded damages were used to identify an average cost per event. (Formula: Total cost of damages / total number of events = Average damage cost per event.) When discussing the extent of potential damages for all hazards, the following scale was utilized: Less than 10% potential damages to total cooperative infrastructure 10-25% potential damages to total cooperative infrastructure 25-50% potential damages to total cooperative infrastructure More than 50% potential damages to total cooperative infrastructure Regardless of hazard categorization, the following matrix (Table 1.5) will be utilized to identify the potential damage extent and likelihood of occurrence for each natural hazard type. Table 1.5 Probability of Hazard Occurrence Sample Three Rivers Electric Cooperative Infrastructure Vulnerability Assessment Matrix Hazard: Less than 1% in any 1-10% chance in any given year 10-99% chance in any Near 100% probability in any Less than 10% of damage to system 10-25% damage of system 26-50% damage of system More than 50% damage of system In many instances, natural hazard events occur without causing significant damage to the cooperative s infrastructure. The more significant impact of natural hazard episodes comes in the form of reported customer outages. The infrastructure may not be significantly harmed by an ice storm, but may result in prolonged and widespread outages in the cooperative s service area. In considering the potential impact of a hazard, loss of function provides a more concise picture for comparison of events and geographic regions of the state. In addition to system damage, each hazard will be evaluated on the average number of reported or estimated outages per event occurrence. (Formula: Average number of outages reported / Total number of customers = Average percentage of outages reported per event). 43-9

Potential Extent of Impact May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] Table 1.6 Sample Three Rivers Electric Cooperative Service Interruption Vulnerability Assessment Matrix Hazard: Less than 10% of customers report outages 10-25% of customers report outages 26-50% of customers report outages More than 50% of customers report outages Probability of Damage-causing Hazard Occurrence Less than 1% in any 1-10% chance in any given year 10-99% chance in any > Near 100% probability in any 43-10

[THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Section 5: Risk Assessment A) Historical Hazards: Tornadoes In the last 60 years, 48 tornadoes have been reported within the Three Rivers cooperative boundaries. Figure 3 provides a pictorial representation of all recorded tornado touchdown sites and recorded paths. (Data for map collected from NOAA.) A data insufficiency exists, however, between 1950 and 2003 in both historical hazard records and cooperative records concerning damage estimates. For the purpose of this assessment, the years for which records exist for both data sets have been used. From 2003-2011, Three Rivers service area within the state of Missouri has experienced a total of 12 tornadic events. Using the previously described methodology, the probability of a tornadic event in the Three Rivers service area in any is 133% (12 events / 9 years = 133%). Estimated cooperative material damages associated with each of these events were compiled by Three Rivers staff. None of the 12 occurrences caused physical damage to cooperative assets, but nine of the twelve events had associated reported outages, resulting in a 75% probability that any given tornadic occurrence will produce damage or outages (9 events / 12 occurrences = 75%). Table 1.7 provides a summary of event dates, EF-scale ratings, damage cost estimates and outages reported. Figure 3 43-11

Potential Extent of Damage May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] Table 1.7 Three Rivers Tornadic Event Summary Date of event EF Scale rating Damage estimates Outages Reported 5/4/03 F0 $0 275 5/6/03 F0-F1 $0 5,970 9/26/03 F0 $0 225 5/27/04 F0 $0 12 7/5/04 F1 $0 650 1/7/08 F0 $0 456 6/10/09 F1 $0 238 12/31/10 F0-F2 $0 19 2/27/11 F1 $0 1,156 Data provided based on internal Three Rivers records which reflect cost from the referenced event year. Based upon the last nine years of historical event records, the average tornado to affect the cooperative will include an EF0-EF1 rating, causing an average damage cost of $0 per event ($0 / 12 events = $0). This averaged amount accounts for less than 1% of Three Rivers total overhead assets and building valuation ($0 / $232,719,170 = 0%). Table 1.8 demonstrates the probability of occurrence in conjunction with the potential extent of damage. Table 1.8 Probability of Hazard Occurrence Three Rivers Electric Cooperative Infrastructure Vulnerability Assessment Matrix Hazard: Tornado Less than 1% in any 1-10% chance in any given year 10-99% chance in any Near 100% probability in any Less than 10% of damage to system 10-25% damage of system 26-50% damage of system More than 50% damage of system An average of 1,000 customers reported outages during recorded tornadoes since 2003. When compared with the total number of customers served by Three Rivers, it can be projected that 4 percent of all customers may report outages during any given tornadic event. Table 1.9 demonstrates the probability of occurrence in conjunction with the potent extent of impact upon local customers. 43-12

Potential Extent of Impact [THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Table 1.9 Three Rivers Electric Cooperative Service Interruption Vulnerability Assessment Matrix Hazard: Tornado Less than 10% of customers report outages 10-25% of customers report outages 26-50% of customers report outages More than 50% of customers report outages Probability of Damage-causing Hazard Occurrence Less than 1% in any 1-10% chance in any given year 10-99% chance in any > Near 100% probability in any Severe Thunderstorms, High Wind, and Hail According to the National Oceanic and Atmospheric Administration (NOAA), from 2003-2011, Three Rivers service area has experienced a total of 200 hail events and 277 thunderstorm / high wind events. Therefore, the probability of a hail event in the Three Rivers service area in any is near to 100% (200 events / 9 years = 2,222%) while the probability of a thunderstorm/ high wind event in any is also near to 100% (277 events / 9 years = 3,077%). Estimated material damages associated with these types of events were compiled by Three Rivers staff. The data has been organized by month rather than by event. Since January 2003, Three Rivers has had no damage related to hail, resulting in a less than 1% probability that any given hail event will result in damage (0 / 200 = 0%). Based upon historical records, the average hail event to affect the cooperative will cause an average damage cost of $0 ($0 / 200 events = $0). This averaged amount accounts for less than 1% of Three Rivers total overhead asset valuation ($0 / $223,663,170 = 0). Table 1.10 provides a summary of those thunderstorm/high wind events which caused damage to cooperative infrastructure by month/date, cost estimate of damage and reported outages. 89 of the 277 occurrences caused outages, resulting in a 32.1% probability that any given thunderstorm/high wind occurrence will produce damage and/or outages. (89 / 277 = 32.1%) 43-13

Table 1.10 May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] Three Rivers Thunderstorm/High Wind/Hail Event Damage Summary By Month/Date Event Damage Outages Event Damage Outages Event Damage Outages date estimates reported date estimates reported date estimates reported 3/2003 $0 636 6/2006 $0 897 3/2009 $0 761 5/2003 $149,000 2,318 7/2006 $0 216 4/2009 $0 10 6/2003 $0 1,586 8/2006 $0 1,038 5/2009 $0 839 7/2003 $0 376 9/2006 $0 118 6/2009 $0 225 8/2003 $0 521 10/2006 $0 33 7/2009 $0 1,175 9/2003 $0 175 11/2006 $0 84 8/2009 $0 115 10/2003 $0 56 1/2007 $0 195 9/2009 $0 24 11/2003 $0 5 2/2007 $0 627 10/2009 $0 638 3/2004 $0 68 3/2007 $0 125 12/2009 $0 479 4/2004 $0 5 4/2007 $0 48 1/2010 $0 31 5/2004 $0 271 5/2007 $0 52 3/2010 $0 201 6/2004 $0 95 6/2007 $0 174 4/2010 $0 626 7/2004 $0 185 7/2007 $0 202 5/2010 $0 286 8/2004 $0 1,792 8/2007 $0 877 6/2010 $0 1,277 9/2004 $0 1 9/2007 $0 240 7/2010 $0 680 10/2004 $0 219 10/2007 $0 188 8/2010 $0 676 1/2005 $0 204 12/2007 $0 190 9/2010 $0 167 2/2005 $0 29 1/2008 $0 804 10/2010 $0 281 3/2005 $0 186 2/2008 $0 108 11/2010 $0 10 4/2005 $0 850 3/2008 $0 869 12/2010 $0 14 5/2005 $0 88 4/2008 $0 240 1/2011 $0 1 6/2005 $0 1,347 5/2008 $0 1,409 2/2011 $0 228 7/2005 $0 639 6/2008 $0 1,525 3/2011 $0 361 8/2005 $0 364 7/2008 $0 842 4/2011 $0 211 9/2005 $0 2,529 8/2008 $0 217 5/2011 $0 2,166 10/2005 $0 18 9/2008 $0 1,210 6/2011 $0 2,100 11/2005 $0 632 10/2008 $0 28 7/2011 $0 296 3/2006 $0 168 11/2008 $0 12 8/2011 $0 1,824 4/2006 $0 125 12/2008 $0 1,098 9/2011 $0 56 5/2006 $0 87 2/2009 $0 65 TOTAL $149,000 Data provided based on internal Three Rivers records which reflect cost from the referenced event year. Based upon historical records, the average thunderstorm/high wind event to affect the cooperative will cause an average damage cost of $1,674 ($149,000 / 89 events = $1,674). This averaged amount accounts for less than 1% of Three Rivers overhead asset valuation ($1,674 / $223,663,170 = 0.007). Table 1.11 demonstrates the probability of occurrence in conjunction with the potential extent of damage for both hail and thunderstorm/high wind events. 43-14

Potential Extent of Impact Potential Extent of Damage [THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Table 1.11 Probability of Hazard Occurrence Three Rivers Electric Cooperative Infrastructure Vulnerability Assessment Matrix Hazard: Thunderstorm/High Wind/Hail Less than 10% of damage to system 10-25% damage of system Less than 1% in any 1-10% chance in any given year 10-99% chance in any Near 100% probability in any 26-50% damage of system More than 50% damage of system An average of 506 customers reported outages during recorded hail, thunderstorm, and high wind events since 2003. When compared with the total number of customers served by Three Rivers, it can be projected that 2.3% of all customers may report outages during any given hail, thunderstorm, or high wind event. Table 1.12 demonstrates the probability of occurrence in conjunction with the potent extent of impact upon local customers. Table 1.12 Three Rivers Electric Cooperative Service Interruption Vulnerability Assessment Matrix Hazard: Thunderstorm/High Wind/Hail Less than 10% of customers report outages 10-25% of customers report outages 26-50% of customers report outages More than 50% of customers report outages Probability of Damage Causing Hazard Occurrence Less than 1% in any 1-10% chance in any given year 10-99% chance in any > Near 100% probability in any 43-15

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] Flood and Levee Failure Flood and levee failure are both potential threats to the existing infrastructure of the Three Rivers Electric Cooperative. Three Rivers service territory is bordered on the north by the Missouri River and is crisscrossed by the Osage and Gasconade rivers. Significant portions of the service area are located in the 100 year floodplain. Figure 4 below depicts the 100 year floodplain in relation to the cooperative s boundaries. Currently, inundation data for levee failure is lacking due to issues surrounding mapping, appropriate models, and its close association with flooding events. Figure 5 below provides the location of known state and federal levees within the cooperative s boundaries. All levees are located along the Missouri River on the north border of the service area. Figure 4 43-16

[THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Figure 5 From 2003-2011, Three Rivers s service area has experienced 123 flooding events. Currently, no data concerning levee failure damage can be separated from flood damage data. Therefore, the probability of a flood/levee failure event affecting the cooperative assets in any is near 100% (123 events / 9 years = 1,366%). Estimated material damages associated with each of these events were compiled by Three Rivers staff. Table 1.14 summarizes flood event dates by month, damage cost estimates, and estimated reported outages. Outages are estimated because cooperative records do not include specific reasons for outages. Damage estimates are based solely on FEMA disaster declarations. One of the 123 occurrences caused damage to cooperative assets, resulting in a less than 1% probability that any given flood occurrence will produce damage. (1 / 123 = 0.8%) Table 1.13 Three Rivers Flood Event Summary Event date Damage estimates Outages reported March 2008 $1,129,000 300 (est.) Data provided based on internal Three Rivers records which reflect cost from the referenced event year. Flood and levee failure events vary widely based upon numerous factors including, but not limited to, annual precipitation and extent of levee damage. Based upon historical records, the average flood/levee failure event to affect the cooperative will cause an average damage cost of $1,129,000 ($1,129,000 / 1 events = $1,129,000). This averaged amount accounts for less than 1% of Three Rivers overhead asset valuation ($1,129,000 43-17

Potential Extent of Impact Potential Extent of Damage May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] / $223,663,170 = 0.5%). Table 1.14 demonstrates the probability of occurrence in conjunction with the potential extent of damage. Table 1.14 Probability of Hazard Occurrence Three Rivers Electric Cooperative Infrastructure Vulnerability Assessment Matrix Hazard: Flood Less than 1% in any 1-10% chance in any given year 10-99% chance in any > 100% probability in any Less than 10% of damage to system 10-25% damage of system 26-50% damage of system More than 50% damage of system An average of 300 customers reported outages during recorded flooding events since 1995. When compared with the total number of customers served by Three Rivers, it can be projected that 1% of all customers may report outages during any given flooding event. Table 1.15 demonstrates the probability of occurrence in conjunction with the potent extent of impact upon local customers. Table 1.15 Three Rivers Electric Cooperative Service Interruption Vulnerability Assessment Matrix Hazard: Flood Less than 10% of customers report outages 10-25% of customers report outages 26-50% of customers report outages More than 50% of customers report outages Probability of Damage Causing Hazard Occurrence Less than 1% in any 1-10% chance in any given year 10-99% chance in any > Near 100% probability in any 43-18

Potential Extent of Damage [THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Severe Winter Weather From 2003-2011, Three Rivers s service area has experienced a total of 21 severe winter weather events, including significant snowfall and ice storms. Therefore, the probability of a severe winter weather event in the Three Rivers service area in any is near 100% (21 events / 9 years = 233%). Estimated material damages associated with each of these events were compiled by Three Rivers staff, but damage estimates are available from 2003-2011 only. Table 1.16 provides a summary of event dates, types, associated damage estimates, and reported outages. Nine of the 21 occurrences caused either damage to cooperative assets and/or outages, resulting in a 42.8% probability that any given severe winter weather occurrence will produce damage. (9 / 21 = 42.8%) Table 1.16 Three Rivers Severe Winter Weather Event Summary Event date Event type Damage estimates Outages reported 1/25/04 Winter storm 47 11/24/04 Winter storm 3,525 11/29/06 Winter storm 55 12/1/06 Winter storm 2 1/12/07 Ice storm $597,000 6,765 1/20/07 Winter storm 347 12/8/07 Ice storm $307,000 7,865 12/15/07 Snow 28 1/31/11 Winter storm 1 Data provided based on internal Three Rivers records which reflect cost from the referenced event year. Based upon these historical records, the average severe winter weather event to affect the cooperative will cause an average damage cost of $100,444 ($904,000 / 9 events = $100,444). This averaged amount accounts for less than 1% of Three Rivers total overhead asset valuation ($100,444 / $223,663,170 = 0.044%). Table 1.17 demonstrates the probability of occurrence in conjunction with the potential extent of damage. Table 1.17 Probability of Hazard Occurrence Three Rivers Electric Cooperative Infrastructure Vulnerability Assessment Matrix Hazard: Severe Winter Weather Less than 1% in any 1-10% chance in any given year 10-99% chance in any Near 100% probability in any Less than 10% of damage to system 10-25% damage of system 26-50% damage of system More than 50% damage of system 43-19

Potential Extent of Impact May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] An average of 887 customers reported outages during recorded severe winter weather events since 2003. When compared with the total number of customers served by Three Rivers, it can be projected that 4% of all customers may report outages during any given severe winter weather event. Table 1.18 demonstrates the probability of occurrence in conjunction with the potent extent of impact upon local customers. Table 1.18 Three Rivers Electric Cooperative Service Interruption Vulnerability Assessment Matrix Hazard: Severe Winter Weather Less than 10% of customers report outages 10-25% of customers report outages 26-50% of customers report outages More than 50% of customers report outages Probability of Damage Causing Hazard Occurrence Less than 1% in any 1-10% chance in any given year 10-99% chance in any > Near 100% probability in any Wildfire The incidence of wildfire in the Three Rivers service area presents a unique risk assessment. According to the Missouri Department of Conservation, Cole, Franklin, Gasconade, Maries, Miller, Moniteau and Osage counties have all experienced wildfires between 2004 and 2008. Although there is anecdotal information that wildfire has damaged some poles, Three Rivers does not have hard data on any wildfire damage that has occurred in the past ten years. Table 1.19 summarizes the incidences of wildfire within the seven counties. Therefore, the probability of a wildfire event in the Three Rivers Cooperative service area in any is near 100%. (860 events / 4 years = 21,500%). Although Three Rivers does not have records of any significant damage from wildfires, for the purposes of this assessment, wildfire and its associated impacts cannot be eliminated from the realm of possibility. 43-20 Table 1.20 Wildfire summary by county Average County # of Wildfires, 2004-08 Annual # of Wildfires Average Annual Acres Burned Acres Burned Cole 43 8.6 103.05 21 0 Franklin 334 66.8 914.74 183 7 Gasconade 48 9.6 395 79 2 Maries 54 10.8 686.5 137 2 Miller 248 49.6 1457.16 291 5 Moniteau 74 14.8 368.91 74 1 Osage 59 11.8 361.3 72 0 Totals 860 35.6 4,286.66 857 17 Source: Missouri State Hazard Mitigation Plan, 2010 Total Buildings Damaged

Potential Extent of Impact Potential Extent of Damage [THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 The potential extent of damage caused by wildfire is difficult to determine. Like earthquakes and dam failure, wildfires have had no measurable impact upon the Three Rivers service area. Between 2004 and 2008, 860 fires have burned a total of 4,286.66 acres, for an average of 4.98 acres affected per event. Three Rivers sustained no damage related to wildfires in its service area during this time period. Cooperative assets are located throughout the service area rather than being located at a single central site. With an average of 4.98 acres per fire in the service area, it is unlikely that infrastructure damage would exceed 1% based upon asset location and unlikeliness of an uncontrollable wildfire. This initial assessment assumes a limited impact upon electric distribution infrastructure of less than 10% (Table 1.20). Further study will be required to create a model for damage assessments related to wildfire. Table 1.20 Probability of Hazard Occurrence Three Rivers Electric Cooperative Infrastructure Vulnerability Assessment Matrix Hazard: Wildfire Less than 1% in any 1-10% chance in any given year 10-99% chance in any Near 100% probability in any Less than 10% of damage to system 10-25% damage of system 26-50% damage of system More than 50% damage of system No customers have reported outages during recorded wildfires between 2004 and 2008. When compared with the total number of customers served by Three Rivers, it can be projected that less than 1% of all customers may report outages during any given wildfire event. Table 1.21 demonstrates the probability of occurrence in conjunction with the potent extent of impact upon local customers. Table 1.21 Three Rivers Electric Cooperative Service Interruption Vulnerability Assessment Matrix Hazard: Wildfire Less than 10% of customers report outages 10-25% of customers report outages 26-50% of customers report outages More than 50% of customers report outages Probability of Hazard Occurrence Less than 1% in any 1-10% chance in any given year 10-99% chance in any > Near 100% probability in any 43-21

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] B. Non-historical Hazards Earthquakes The closest source of earthquake risk in the Three Rivers service area is the New Madrid Fault, which runs from Northern Arkansas through Southeast Missouri and Western Tennessee and Kentucky to the Illinois side of the Ohio River Valley. The other major earthquake fault in Missouri is the Nemaha Uplift which affects the northwest and western side of the state. Most of Missouri's earthquake activity has been concentrated in the southeast corner of the state, which lies within the New Madrid seismic zone. The New Madrid fault has the potential to cause damage throughout the state of Missouri, including the Three Rivers service area. Scientists from the U.S. Geological Survey (USGS) and the Center for Earthquake Research and Information (CERI) at the University of Memphis have estimated the probability of a magnitude 6.0 or greater earthquake from the New Madrid Fault is 25-40 percent through the year 2053. The probability of an earthquake increases with each passing day. The projected earthquake intensity ratings for the cooperative region changes based upon the Modified Mercalli Scale. Given a New Madrid earthquake with a 6.7 magnitude, the region would experience Level V - VI intensity characteristics. In the event of an earthquake with a 7.6 magnitude, the region would experiences Level VI - VII intensity characteristic while an earthquake with an 8.6 magnitude would most likely cause Level VII - VIII intensity characteristics. In the event of an earthquake with a 7.6 magnitude, the Three Rivers service area would most likely experience minor building damage as well as damage to the electrical distribution system. This damage, however, would most likely be relatively minimal and localized when compared with the southeast corner of the state. Distribution lines overhead and underground could become disconnected or severed, and transformers could be damaged. Though the probability of occurrence is very small, the potential extent of damage could significantly impact both the cooperative and its customers as demonstrated in Table 1.22. 43-22

Potential Extent of Impact Potential Extent of Damage [THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Table 1.22 Probability of Hazard Occurrence Three Rivers Electric Cooperative Infrastructure Vulnerability Assessment Matrix Hazard: Earthquake Less than 1% in any 1-10% chance in any given year 10-99% chance in any Near 100% probability in any Less than 10% of damage to system 10-25% damage of system 26-50% damage of system More than 50% damage of system Based upon information from CERI, FEMA, and SEMA, it may be estimated that 3,000 4,300 customers could report outages related to an earthquake event. When compared with the total number of customers served by Three Rivers, it can be projected that up to 20% of all customers may report outages during any given seismic event. Table 1.23 demonstrates the probability of occurrence in conjunction with the potent extent of impact upon local customers. Table 1.23 Three Rivers Electric Cooperative Service Interruption Vulnerability Assessment Matrix Hazard: Earthquake Less than 10% of customers report outages 10-25% of customers report outages 26-50% of customers report outages More than 50% of customers report outages Probability of Damage Causing Hazard Occurrence Less than 1% in any 1-10% chance in any given year 10-99% chance in any > Near 100% probability in any Dam Failure Like earthquakes, dam failures have had no measurable impact upon the Three Rivers service area to date. According to Missouri DNR s Dam Safety Division, 345 dams currently exist within the cooperative boundaries: 33 in Cole County, 144 in Franklin County, 83 in Gasconade County, 30 in Maries County, 15 in Miller County, 19 in Moniteau County and and 21 in Osage County. Of these dams, eight in Cole County, 23 in Franklin County, 14 in Gasconade County, three in Maries County, two in Miller County, two in Moniteau County and one in Osage County are regulated by the state due to the fact that they are non-agricultural, non-federal dams which exceed 35 feet in 43-23

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] height. Figure 6 shows the locations of all known dams located within Three Rivers s service area. (Map sources: www.msdis.missouri.edu; www.dnr.mo.gov/env/wrc.) The dam with the potential to cause the most extensive damage in the event of failure is Bagnell Dam at the Lake of the Ozarks, on the southwestern border of Three Rivers service area. This dam is part of a federally regulated system of reservoirs under the authority of the U.S. Corps of Engineers. Due to homeland security concerns, more detailed information on vulnerability in relation to this dam was not released. 26 dam failures have occurred within the state of Missouri over the past 100 years. However, no such event has occurred within or near the cooperative s boundaries. However, for the purposes of this assessment, dam failure and its associated impacts cannot be eliminated from the realm of possibility. In order to allow for a risk assessment, the probability of this event has been included as less than 1%. Determining the potential extent of dam failure is currently impossible due to a lack of data concerning inundation zones. Further study concerning existing dams and their impact is required to make a more comprehensive assessment of potential damages. This initial assessment assumes a limited impact upon downstream electric distribution infrastructure of less than 10% for both infrastructure damage and service interruption. (Tables 1.25 and 1.26). Figure 6 43-24

Potential Extent of Impact Potential Extent of Damage [THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Table 1.25 Probability of Hazard Occurrence Three Rivers Electric Cooperative Infrastructure Vulnerability Assessment Matrix Hazard: Dam Failure Less than 1% in any 1-10% chance in any given year 10-99% chance in any Near 100% probability in any Less than 10% of damage to system 10-25% damage of system 26-50% damage of system More than 50% damage of system Table 1.26 Three Rivers Electric Cooperative Service Interruption Vulnerability Assessment Matrix Hazard: Dam Failure Less than 10% of customers report outages 10-25% of customers report outages 26-50% of customers report outages More than 50% of customers report outages Probability of Damage Causing Hazard Occurrence Less than 1% in any 1-10% chance in any given year 10-99% chance in any > Near 100% probability in any 43-25

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] Section 6: Mitigation strategies Previous efforts at mitigation For organizations like Three Rivers, mitigation is considered to be part of prudent business operations. In order to ensure the delivery of a quality product and minimize service interruptions, a number of mitigation strategies are continually utilized. Routine maintenance and upgrades to existing equipment are completed as part of daily tasks. Vegetation management is utilized to limit the cascading effects of natural hazards. Safety and reporting information are disseminated to the public through various types of media. Mutual aid agreements and partnerships create relationships which provide for future support in the event of a natural disaster. Additionally, mitigation is considered prior to any expansion of service into special hazard areas. Before any service is build, it is first staked out in coordination with local builders and property owners. This process, completed by the Line Superintendent and contracted engineers, identifies and addresses foreseeable hazards and safety issues before any new service lines area constructed. USDA-RUS specifications regarding operation and safety are utilized in every step of the process. Steps are taken to practically minimize the exposure of equipment to loss due to foreseeable hazards, particularly flooding. Customers who reside in the floodplain are not charged for repairs or losses associated with flooding unless they purposefully destroy or restrict the cooperative from protecting their distribution system assets. Existing and potential resources As stated above, mitigation is a key component of good business practices. Three Rivers Electric Cooperative includes mitigation strategies as part of regular work activities to ensure service with minimal interruptions. Funding for these activities is provided through the cooperative s normal budgetary process for maintenance. In order to expand mitigation efforts beyond normal maintenance, it is likely that Three Rivers will need to seek outside funding sources. These may include private, state, or federal programs which provide grant and loan funding. Upon passage of this plan, Three Rivers will be eligible for funding through FEMA in the following categories: Hazard Mitigation Grant Program Flood Mitigation Assistance Program Pre-Disaster Mitigation Program 406 Stafford Act Development of goals, objectives, and actions Establishing mitigation goals, objectives, and actions for a business entity requires a slightly different approach than public agencies. Certainly, a number of similarities exist; both entities must consider which hazards most commonly occur and have the greatest 43-26

[THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 potential for causing disruption to members or residents. They must also consider which types of actions will maximize benefits and minimize costs, how mitigation strategies will be implemented, who will enforce implementation, and how the overall plan will be maintained and updated. The Three Rivers mitigation planning committee, with assistance from MRPC staff, worked to identify goals, actions, and objectives which addressed hazard mitigation issues. The committee first identified ongoing mitigation strategies as well as potential strategies which seek to improve service and limit disruptions resulting from natural hazards. Action items were then analyzed for common characteristics and summarized to create nine objectives. Likewise, these nine objectives were grouped into similar categories and used as the basis for the four overarching goals. Table 1.27 provides a simple synopsis of the goals and objectives before prioritization. Traditionally, the STAPLEE (Social, Technical, Administrative, Political, Legal, Environmental, and Economic) method is used to prioritize mitigation actions. These categories, however, do not necessarily align with the private sector in the same way they are applicable to governmental agencies. A number of action items could be included with multiple goals and objectives, for example. As a result, the committee chose to use a different method to prioritize their mitigation strategy. Table 1.27 Identified Goals Goal 1: Protect the health and safety of the community. Goal 2: Reduce future losses due to natural hazard events. Goal 3: Improve emergency management capabilities and enhance local partnerships. Goal 4: Continue to promote public awareness and education. THREE RIVERS goals and objectives Identified Objectives Objective 1: Prevent injury, loss of life, and damage to property. Objective 2: Reduce outage time to critical facilities. Objective 1: Protect and maintain existing infrastructure. Objective 2: Research and develop plans for future infrastructure improvements, seeking implementation where feasible. Objective 3: Research and develop plans for future communication and data collection improvements where feasible. Objective 1: Improve assessment of outages and reduce response time. Objective 2: Create or maintain partnerships with outside agencies. Objective 1: Utilize media resources to promote public education. Objective 2: Continue interaction with local schools and civic groups. After identifying ongoing and potential action items, the committee created three priority tiers: First tier actions focus on physical infrastructure protection and improvements which ensure continued, quality service and seek to reduce power outages. These types of actions are the highest priority of Three Rivers. Second tier actions create and maintain working relationships to reduce and prevent the impact of power outages. These include improvements to safety and 43-27

May 18, 2012 [THREE RIVERS ELECTRIC COOPERATIVE] reporting information, mutual aid agreements, and other efforts which seek to expand and improve both customer service and disaster planning. Third tier actions identify potential projects for other system improvements. These include mapping efforts, technological improvements, and research related to the expansion of mitigation efforts. Actions within each tier may be funded through regular budgetary methods or identified outside sources. Tables 1.28, 1.29, and 1.30 provide lists of action items by tier as well as the goals and objectives identified with each. Table 1.28 Prioritized Mitigation Actions for Three Rivers Electric Cooperative Tier 1 Action item: Use vegetation management to prevent interference with delivery of power. Tier 1 Goal/Objective Goal 1 / Objective 1 Goal 2 / Objective 1 Timeframe for completion Ongoing effort Cost-benefit score Low cost High benefit Score: 9 Perform routine maintenance and utilize upgraded equipment where possible to ensure quality of system. Tasks may include part replacement and/or upgrades. Identified work includes, but is not limited to: Addition of lightning arresters, electronic reclosures, conductors, guide wires. Replacement or repair on poles, cross-arms, lines. Replacement of copper wire. Goal 1 / Objective 1 Goal 2 / Objective 1 Ongoing effort Low cost High benefit Score: 9 Complete annual inspections of lines and poles. Goal 1 / Objective 1 Goal 2 / Objective 1 Completed annually. Low cost Medium benefit Score: 6 Add alternate source wiring to eliminate or reduce time of outages. Goal 1 / Objective 1 Goal 1 / Objective 2 Goal 2 / Objective 2 Ongoing effort; Completed as funding allows. Medium cost High benefit Score: 4 Convert overhead lines to underground lines or vice versa in troubled areas based on vulnerability. Goal 1 / Objective 1 Goal 1 / Objective 2 Goal 2 / Objective 1 Goal 2 / Objective 2 Ongoing effort; Dependent upon funding. Medium cost High benefit Score: 4 43-28

[THREE RIVERS ELECTRIC COOPERATIVE] May 18, 2012 Table 1.29 Prioritized Mitigation Actions for Three Rivers Electric Cooperative Tier 2 Action item: Provide safety and reporting information to the general public through varying methods: Company website Social media sites Local newspapers Presentations Publications Increase number of generators owned for use in critical asset outages Maintain mutual aid agreements with other rural electric cooperatives. Partner with county emergency management agencies to ensure power for local shelters, fuel stations, and public safety. Cooperate with local law enforcement and government officials to reduce the impact of power outages. Tier 2 Goal/Objective Goal 1 / Objective 1 Goal 4 / Objective 1 Goal 1 / Objective 1 Goal 1 / Objective 2 Goal 2 / Objective 2 Timeframe for completion Ongoing effort Dependent upon additional funding. Cost-benefit Score Low cost Medium benefit Score: 6 Medium cost High benefit Score: 4 Goal 3 / Objective 2 Ongoing effort. Low cost Low benefit Score: 3 Goal 1 / Objective 1 Goal 1 / Objective 2 Goal 3 / Objective 2 Goal 1 / Objective 1 Goal 3 / Objective 2 Ongoing effort. Ongoing effort. Low cost High benefit Score: 1 Low cost High benefit Score: 1 Table 1.30 Prioritized Mitigation Actions for Three Rivers Electric Cooperative Tier 3 Action item: Research methods for waterproofing meters in flood-prone areas. Collect GPS data for all existing infrastructure. Utilize GIS technology to reduce site identification and response time. Consider implementation of automated voice response systems to improve outage reporting. Monitor developments in data availability concerning the impact of dam failure and wildfire upon the THREE RIVERS service area through local, state, and federal agencies. Tier 3 Goal/Objective Timeframe for Cost-benefit completion Goal 2 / Objective 2 Ongoing effort. Low cost High benefit Score: 9 Goal 2 / Objective 1 Dependent upon High cost Goal 2 / Objective 3 additional funding. High benefit Goal 3 / Objective 1 Score: 7 Goal 2 / Objective 2 Goal 2 / Objective 3 Goal 3 / Objective 1 Goal 1 / Objective 2 Goal 3 / Objective 1 Goal 1 / Objective 1 Goal 2 / Objective 1 Dependent upon additional funding. Dependent upon additional funding. Ongoing effort. Medium cost Medium benefit Score: 5 High cost Medium benefit Score: 4 Low cost Low benefit Score: 3 43-29